Buying in Switzerland
Buyers Guide & Information
These notes are for guidance as there are proposed changes to the Swiss Law to make it easier of EU citizens and remove existing restrictions. The 'Lex Koller' ruling is expected to be repealed possibly as soon as 2010.
Commercial Properties
There are virtually no restrictions on buying a business in Switzerland. Please ask for further details.
Permits to Purchase
At this present time there is an annual quota of permits for foreigners wanting to buy property in Switzerland.
1,440 per year for the whole of the country.
Each Canton has its own regulations and permits are given only in tourist resorts, they also impose conditions on type and size of property.
Resale of properties in some Communes are restricted until a property has been owned for 5- 10 years to stop property speculation but this does not apply in Canton of Vaud (Montreux, Villars, Les Diablets, Leysin) where owners can resell immediately and also has the largest choice of properties available to buy.
In Valais there is at the moment a 10 year rule unless you wish to sell the property to buy another one in Switzerland or possibly some exceptional circumstances.
A property must be purchased in the purchaser's private name, it is not permitted to buy with a Limited Company.
Purchase fees
Vary with each Canton but in Valais, Les Portes du Soleil resorts of Champery, Morgins, Val d'Illiaz, Torgon and Les Marecottes and Verbier.
The purchase taxes amount to approximately 3% of the purchase price.
In Vaud these costs are around 5%.
Swiss inheritance laws apply to properties in Switzerland so it is advisable to make a Will with the Notary.
Finance Interest rates are lower in Switzerland than the UK and Swiss banks will lend up to 65% of the purchase price over 25 or even 50 years.
It is more like an overdraft secured against the property so can be flexible.
Interest is paid half yearly on the capital.
The Notaire may make a charge of 1.5% of any loan written into Title Deeds.
Taxes on Property
These vary from Canton to Canton. The Canton of Vaud is higher than Valais at the present time.
Rental agencies usually charge around 20% commission for providing a full management and letting service.
Morgins the agent reckons to let for up to 24 weeks in a year.
A property cannot be rented annually as owner is expected to occupy /use for at least 3 weeks in a year.
Rental Income is not taxable in Switzerland but may be due in country of residence.
There are no capital gains on investments in Switzerland.
There are annual taxes of approximately 1.3% of the purchase price to be paid to the Swiss Government, the Canton and the Commune.
In addition to the direct taxes there is also National Defence Tax, Land Tax and Tourist Tax.
The Notaire handling the sale can advise as each Commune has different rates.
Permit B
This is for residency in Switzerland and are easier to obtain for EU citizens and of a certain age and income.
These permits are given by the Canton authorities where the property is situated.
A local address is required to begin the application so possibly a rental address can be given. There are official forms which require a photograph and insurance certificate and reasons for wishing to live in Switzerland.
There will be an agreement on an annual tax income to be paid. It is assumed that the person applying for the permit B is departing his country of origin and tax wise.
The process can take between 2-4 months.
These Permits should be applied for after taking legal and financial advice.
EU citizens with Permit B can buy more than one property as they are considered Swiss citizens.
No authorisation is required for principal residence unless there is more than 1,000m² of land
Permit C is for all non EU foreigners wishing to live in Switzerland.
Visits
Our colleague Monique Vrins tel 0033 622 689 449 or 0033 450 73 48 23 can meet clients on request - either at their hotel, agency or central location such as the local.
Tourist Office. Monique speaks, French, English, Dutch & German and has been in the real estate trade for over 15 years. Email Monique
Land to build chalets is a speciality and possibilities exist in Vaud, the village of Leysin, Torgon in Les Portes du Soleil.
Valais, A Notaire of 29 years of experience based in Sion can meet clients by appointment. For advice or consultations beyond the property purchase her fees are 240Sfrs. For purchases although all Deeds are registered in Swiss Francs the transfers can be made in Euros or US$ Dollars.
A Change in the Law...
Swiss Federal Government announces the abolishment of the Lex Koller Law This means that the Law of foreign ownership of Swiss real estate is to be abolished in 3 years.
The Swiss Federal Government has announced that by 2010 each Canton will have the responsibility for its own foreign property acquisition Laws.
This could mean an even larger demand for Swiss homes with possibility of prices increasing.
Swiss Alpine Chalets part of Alpine Apartments Agency cannot accept any legal responsibility for any errors, omissions loss or damage to any person or property.